Progressive Revenue
A progressive tax code is key to facing the affordability crisis head on.
Our tax code is upside down. We’re working to fix it.
Washington has the second-most regressive tax code in the country, where low-income households pay a much larger share of their income in taxes than high-income households do.
This isn’t a natural phenomenon — it’s shaped by laws and institutions designed to protect the interests of those who already have power. We want to change that.
We need visionary thinking to fund the public good.
We all deserve to live in well-resourced communities where public investments in programs, services, and infrastructure enrich our lives and are funded through a balanced tax code.
Tax extreme wealth and high incomes to support programs that help us all thrive
The state’s budget primarily relies on regressive revenue tools that disproportionately burden lower-income people. By closing loopholes exploited by the ultra-wealthy, expanding the Capital Gains Tax, and enacting a wealth tax, we could address soaring economic inequality head-on and raise critical public revenue.
Ensure big corporations invest back into our communities
Some of the world’s largest corporations operate in Washington, with no shortage of profit to reinvest back into communities. A high-earners payroll tax, paid by the employer, and a corporate income tax would ensure that these corporations no longer hoard enormous amounts of money tax-free, while the bill for funding critical programs is passed on to small businesses and working people.
How we’re moving toward that future
Every year, during Washington state’s legislative session, we advocate for evidence-based policy solutions that help bring our vision for a more equitable future closer to reality. These practical policy ideas are communicated to lawmakers and everyday Washingtonians as viable solutions to some of our toughest problems.
EOI has been at the forefront of Washington state’s most historic progressive tax reforms.
We have shown people what’s possible when we are all working together to achieve a fairer tax code.
Capital Gains Tax
We partnered with a broad coalition of advocates in 2021 to push for a tax on the capital gains of the very wealthy, with a 7% tax on profits exceeding $278,000 per year from the sales of assets like stocks and bonds. In 2025, the measure generated nearly $1.5 billion to fund public education, child care, and early learning – as well as capital improvements to schools and licensed child care centers.
Millionaires Tax
In 2026, we partnered with over 100 organizations to advocate for passage of the historic Millionaires Tax, a 9.9% tax on annual earnings over $1 million. Revenue from the Millionaires Tax, an estimated $3 billion each year, will make life more affordable, sustain vital public services, and reduce taxes for people and businesses across the state.
Well-designed tax codes make life more affordable for everyone.
Progressive revenue solutions can fund public investments that support people, businesses, and communities across the state. We all want well-funded schools, accessible roads, thriving local economies, and health care that is affordable.
State funding for critical public programs and services consistently grows more slowly than our economy does. Since Washington’s budget primarily relies on regressive revenue tools that disproportionately impact lower-income people, it creates a devastating cycle of budget cuts.
Affordable child care
The high cost of child care isn’t just a burden for families – it also makes it harder for businesses to recruit and retain employees. With sufficient public revenue, Washington could implement a universal child care system where child care is affordable and high-quality for all families, and child care workers receive a living wage and good benefits.
Lower housing costs
Everyone should have access to a stable and affordable home, but housing costs are too high for too many people: a third of households across Washington, both owners and renters, spend more than 30% of their income on housing. With additional public revenue, Washington could design a property or renter tax credit to offset rapidly increasing housing costs, and expand rental assistance vouchers so more people can get access to housing or afford to stay in their homes.
A well-funded budget can also support an aggressive increase in housing supply by providing subsidized affordable housing, streamlining zoning and regulations, and funding innovative research on cost-lowering construction practices.
Accessible and affordable health care
Everyone should be able to access quality, affordable health care, but high and unpredictable costs force thousands of Washingtonians to go uninsured, skip treatments, and cut medication doses. With more funding and capacity, Washington state could strengthen health care programs and subsidies for low- and middle-income people, support small business owners, and drive down costs for people who buy their own insurance or get coverage through an employer.
Reports & Articles
This report provides a series of data snapshots that illustrate our state’s progress toward embedding the values of fairness, care, and opportunity into the foundations of our economy.
We are prevented from realizing shared prosperity because of the robber baron practice of buy, borrow, die.
Washington state’s taxes require too little of those with the highest incomes.
Washington’s upside-down tax code not only furthers inequity, it also creates annual deficits in the state’s budget.
More about our work
Health care
Washington can make health care more accessible and affordable for all by controlling costs, expanding corporate accountability, increasing subsidies, and eventually shifting to a universal health care system.
Dignified Work & Resilient Communities
Good jobs with fair wages, strong benefits, and safe conditions are the bedrock of dignified work, thriving communities, and a stable economy. And no one should have to choose between going to work and caring for themselves or a loved one.
About Our Advocacy
Fighting for bold and grounded policy ideas that make thriving possible for all of us takes collective action. Learn more about how we work in the state capitol and in coalitions to advance our mission.